Dollar General Corp. (NYSE: DG) enjoyed substantial gains, after it reported quarterly earnings Thursday before the opening bell.
The discount store chain, based in Goodlettsville, Tennessee, revealed net sales increased 11% to $5.90 billion in the 2017 third quarter compared to $5.32 billion in the 2016 third quarter. Same-store sales increased 4.3%, attributable to increases in average transaction amount and customer traffic, including an estimated 30- to 35-basis-point net benefit from hurricane-related sales.
Same-store sales increases were driven by positive results in the consumables, seasonal and apparel categories, partially offset by negative results in the home products category.
Gross profit, as a percentage of net sales, was 29.9% in the 2017 third quarter, an increase of eight basis points from the 2016 third quarter.
The Company’s net income was $253 million, or $0.93 per diluted share, in the 2017 third quarter, compared to net income of $235 million, or $0.84 per diluted share, in the 2016 third quarter. An estimated $0.05 hurricane-related net negative impact, driven by hurricane-related expenses, is included in diluted earnings per share for the 2017 third quarter
To quote Dollar General CEO Todd Vasos, "We are pleased with our overall third quarter results, which include a strong same-store sales growth of 4.3% and increases in both average transaction amount and customer traffic over the 2016 third quarter. During the quarter, we effectively balanced our same-store sales growth while achieving gross profit rate expansion and continuing our planned investments in the business."
Dollar General shares galloped $2.36, or 2.6%, to $92.31